Talbots pays more than $100K to settle robocall’ complaint

Wednesday

Apr 28, 2010 at 12:01 AMApr 28, 2010 at 12:42 PM

Talbots Inc. and a California marketing company that worked with the Hingham-based apparel retailer agreed to pay $161,000 in penalties to resolve a Federal Trade Commission complaints about the companies’ “robocalls.”

Talbots Inc. and a California marketing company that worked with the Hingham-based apparel retailer agreed to pay $161,000 in penalties to resolve a Federal Trade Commission complaints about the companies’ “robocalls.”

The federal agency alleged that the telemarketing calls failed to give consumers proper notice of their right to opt out of getting the calls. The agency filed complaints against Talbots and its telemarketer, SmartReply Inc., in federal courts in Boston and in California, respectively.

Federal rules for prerecorded telemarketing messages required that consumers be told how to opt out of getting calls from the seller before the marketing pitch is delivered and to immediately disconnect consumers who indicate they don’t want to get these calls.

The FTC alleged that Talbots and SmartReply violated those requirements during seven advertising campaigns between February and July last year to promote Talbots and J. Jill, the Quincy-based chain that Talbots sold last year. The messages from SmartReply included special sales offered to consumers who had purchased items at a Talbots or J. Jill store.

The messages were drafted by SmartReply and approved by Talbots, according to the FTC. During the seven campaigns, SmartReply made at least 3.4 million robocalls to consumers, the FTC said.

Talbots will pay a $112,000 penalty as part of the settlement, and SmartReply will pay $49,000. SmartReply is paying a smaller amount due to its inability to pay.

“The matter has been resolved amicably with no admission of liability on behalf of the company,” said Julie Lorigan, a spokeswoman for Talbots. “The complaint (against Talbots) was filed by the FTC as part of the normal settlement procedures.”

Delivering prerecorded phone messages without a consumer’s written authorization became prohibited under FTC rules that took effect last September.

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